2003 (8) TMI 97 - AT - Customs

Tribunal Upholds Classification of Copper 'U' Tubes as Pipe Fittings, Not Air-Conditioner Parts

The Tribunal dismissed the appeal and upheld the decision of the Commissioner (Appeals) in classifying imported copper 'U' tubes with brazing rings as ... Tubes and pipe fittings Issues:1. Classification of imported goods - tube and pipe fitting or parts of air-conditioners.Detailed Analysis:The case involves a dispute over the classification of imported copper 'U' tubes with brazing rings attached at each end by Voltas Ltd., Mumbai. The importer claimed classification under Heading 7412.20 as tube and pipe fitting, while the Custom House proposed classification under Heading 8415.90 as parts of air-conditioners. The Dy. Commissioner confirmed the latter classification, leading to an appeal by the importer. The Commissioner (Appeals) accepted the importer's contention that the goods fell under the exclusion from classification in Chapter 84 as parts of general use, specifically tube and pipe fitting of base metal, as per Note 2 to Section XV. This decision prompted an appeal by the Department.The departmental representative argued that the goods, being a specified part of an air-conditioner and intended for use in air-conditioners, should be classified as parts of air-conditioners, citing the judgment of the Supreme Court in GS Auto International Ltd. v. CCE. On the other hand, the respondent's counsel emphasized that the goods met the definition of parts of general use under Section XV and lacked evidence to prove they were solely or primarily for use in air-conditioners under Heading 8415.90.The Tribunal examined the relevant tariff notes, noting that the goods in question were pipe fittings used to connect copper pipes forming the condenser coil in a specific manner. These U bends or return bends were classified as pipe fittings in the Harmonised System of Nomenclature, falling under Heading 74.12. The Tribunal also highlighted that parts of air-conditioners under Heading 8415 should be classified based on the general provisions of Section XVI, excluding components classified under Note 2A to Section XVI. The judgment cited by the departmental representative regarding bolts and nuts forming parts of a motor vehicle was deemed irrelevant to the current case, as it involved different classification notes.Ultimately, the Tribunal dismissed the appeal, upholding the Commissioner (Appeals)'s decision based on the exclusion under Note 2 to Section XV and the specific nature of the goods as pipe fittings rather than parts of air-conditioners.